Low-interest rates and good economic conditions continued to drive a solid real estate market through November. November marked the 7 straight month of positive homes sales. On a year-to-date basis, home sales are running 4.1 percent ahead of 2018’s record volume.
According to the Houston Association of Realtors, single-family home sales across greater Houston totaled 6,395 in November. This is up 3.6% from the same period in 2018.
Homes priced between $250,000 and $500,000 led the way in sales, climbing 12.5 percent versus November 2018. Homes in the $500,000 to $750,000 range climbed 5.2 percent. The luxury segment, which includes homes priced from $750K and above, did not perform well. The number of homes sales in this market segment fell 9.1 percent.
Home prices for single-family homes reached an all-time high for November. The median home price rose 2.5 percent to $240,900. The average price rose 1.1 percent to $297,831. Despite record prices, home price gains have moderated as we approach the end of the year.
According to HAR, total active listings, or the total number of available properties, went up 5.2 percent to 42,139. November sales of all property types totaled 7,577, up 2.1% compared to the same month last year. As a result, the absorption rate for November 2019 was down slightly to 18% from the 19% rate we saw in November of 2018 for all property types.
Days on Market (DOM), or the number of days it took the average home to sell, was 59 compared to 60 a year ago. Inventory was flat at a 3.8-months supply. The national inventory stands at 3.9 months, according to NAR.
According to the Mortgage News Daily, 2019 has been the best year for mortgage rates since 2011. Whether or not this trend continues is always difficult to predict. However, the economy in Houston remains solid, and even if the move up slightly, mortgage rates should stay near historic lows as we enter the new year. If all of these fundamentals remain strong, we should find a good start to the 2020 real estate market.